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(Reuters) – Insignia Financial said on Thursday it had received an improved offer from US-based Bain Capital to acquire the money manager for A$3.07 billion ($1.92 billion), the same as rival CC . Capital Partners (WA:)’ production as the war escalated.
Insignia Financial previously rejected an offer from private equity firm Bain Capital in late December, deeming the offer insufficient for its shareholders.
The 178-year-old Australian fund manager’s reluctance to start a partnership with Bain Capital sparked a bidding war, with US-based investment manager CC Capital Partners entering the fray.
Bain Capital’s updated offer places the company’s shares at a 3.8% premium to their closing price of A$4.43 apiece.
This represents an improvement over Bain’s non-binding offer of A$4.30 per share, representing a 7% increase.
Earlier this month, CC Capital Partners had upped the ante with a rival bid, seeking to acquire the A$4.1 trillion Australian asset management system, a bid that has fueled a fierce bidding war between the suitors. two.
Meanwhile, Insignia has offered to give Bain Capital limited access to certain non-public information on a non-exclusive basis.
A similar offer was made to CC Capital Partners earlier this week, as the wealth manager sought to encourage both vendors to improve their proposals.
“The due diligence arrangement does not guarantee that Bain’s second revised indicator proposal will result in a proposal that is binding or able to be recommended by the Insignia Financial Board,” the company clarified.
Insignia Financial’s funds under management increased by A$7.2 billion to A$326.8 billion as of December 31, highlighting strong investor appetite for Australian-listed wealth managers with established assets. growing stock.
($1 = 1.5949 Australian dollars)
